Bigger loan for best rate but payback the extra immediately?

[Benengo]

Could this make sense? For me A £3k loan is 7.9% over one year but a £5k loan is 4.9%. Could I take 5k then pay back 2k straight away to get the lower rate on on the balance of 3k?

There will be a 28 day interest charge o the 2k I pay back early but this will be less than 12months at 7.9% on 3k

[towser44]

I've done that before. Needed £2,500, it was 8.9% below £7,500 or 2.9% above that. I borrowed the £7,500 and made an overpayment as was allowed (with Halifax) a month later with the excess.

[hyphen]

What does the contract terms say...

[Whistle]

Done this twice with Nationwide.

[The Rotrex Kid]

Benengo said:

Could this make sense? For me A £3k loan is 7.9% over one year but a £5k loan is 4.9%. Could I take 5k then pay back 2k straight away to get the lower rate on on the balance of 3k?

There will be a 28 day interest charge o the 2k I pay back early but this will be less than 12months at 7.9% on 3k

By my maths, the difference between 7.9 and 4.9 over 12 months is about £50. Is it worth bothering about? Just borrow the £3k if you need it.

Then if you have 28 days interest to think about it’s more like £40....